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Can you please explain this question and how to get the answer? Compute the production cost per unit under each plan. (Round answers to 2
Can you please explain this question and how to get the answer?
Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Plan A Plan B Production cost per unit $ eTextbook and Media Compute the gross profit under each plan. Plan A Plan B Gross Profit $ Which plan should be accepted? should be accepted.Current Attempt in Progress Hill Industries had sales in 2019 of $7,520,000 and gross prot of $1,204,000. Management is considering two alternative budge plans to increase its gross prot in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Pla would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 117,000 units. At the end of 2019, Hill has 42,000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 71,000 units. Each unit produced will cost $1.80 ir direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The xed overhead for 2020 should be $1,641,822. Prepare a sales budget for 2020 under each plan. {Round Unit selling price answers to 2 decimal places, as. 52.70.} HILL INDUSTRIES smesBudget For the Year Ending December 31,2020 v PlanA Plan B Prepare a production budget for 2020 under each plan. HILL INDUSTRIES Production Budget Plan A Plan B eTextbook and MediaCompute the production cost per unit under each plan. {Mam bo2dedmalplaoes as. 1.25.} Production cost per unit $ ' $ ' ' eTextbook and Media Compute the grog; prot under each plan. Grog; Prot $ ' $ ' Which plan should be accepted? should be aoceptedStep by Step Solution
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